MANAGEMENT I Johnson & Johnson
An innovative and balanced approach To be considered by a large jury of experts to be worthy of this title, the case has to be outstanding. Luc Dendievel of Johnson & Johnson presented such a case. Here we take a look at some of the elements which made the healthcare giant’s fleet policy stand out from the crowd.
o be considered to be better than all the other fleet policies, a company has to demonstrate excellence in many areas of its fleet policy. It also has to be seen to be leading the field, to be doing things which other companies are not (yet) doing. One of the most obvious examples of this at Johnson & Johnson – and especially for a fleet of so many vehicles – is the funding method chosen. Johnson & Johnson has opted for self funding, an approach which was conceptualised and designed in 2005. Since 2012, this unique model has been fully operational across all sectors of the business (Pharmaceutical, MD&D and Consumer) in the relevant EMEA countries (37), and applied to a fleet of 14,000 vehicles where the critical mass exists or there is no risk to company assets. The key drivers of the self funding model are: to centralise procurement of fleet and increase economies of scale; to centralise asset management for efficiencies; and to optimise cost of funds by using own funds rather than leasing company funds. On top of this, Johnson & Johnson benefits from containing and managing the total cost of ownership, creating complete transparency of costs at a vehicle level, optimising tax
responsibilities (e.g. crossboarder leasing) and minimising risk in the disposal strategy through a balanced portfolio approach. Insurance The concept of ‘doing it themselves’ extends to insurance. Between 2008 and 2012 Johnson & Johnson instigated a self insurance model, once again conceptualised, designed and implemented in EMEA where the self funding model is operational or critical mass exists. At the same time the company established a European liability insurance program, through one broker and one insurance company, to which all Johnson & Johnson EMEA companies can subscribe, depending upon local conditions. Johnson & Johnson EMEA manages third party liability centrally. The fleet management operation also partners with SAFE Fleet (a fleet safety program) to increase safety for employees, and to reduce accidents and costs.
Johnson & Johnson believes in a decentralised operating model.
FLEET EUROPE # 68
Supplier optimisation Over recent years Johnson & Johnson has gone down the route of reducing its supply sources. There has been a brand reduction from 47 brands to 7 preferred brands across all
Published on Jan 24, 2014